Bragg Gaming reports 2023 results; confirms formation of special committee

Full-year revenue and profit both saw growth. 

bragg gi

Bragg Gaming has released financial figures for the fourth quarter and full year of 2023, showing a positive set of results overall. 

Q423 

In the fourth quarter of 2023, Bragg saw dips in its revenue and profit, though this has been attributed to the revised commercial terms agreed with a key strategic partner during the quarter. 

Revenue decreased by 1.4% to €23.4m ($25.4m), while gross profit fell 7.3% to €12m, during the quarter. Gross profit margin was valued at 51.5% for Q4 2023 compared with 54.9% for Q4 2022. 

Wagering revenue did, however go up, rising 18.1% to €6.1bn. 

On the other hand, highlighting the overall drop off in the quarter, adjusted EBITDA fell 23.7% to a total of €2.8m. 

FY23 

Looking at the entirety of 2023, the picture is a lot brighter for Bragg. 

Revenue increased 10.4% to a figure of €93.5m, while gross profit also saw growth, going from €45.1m in 2022 to €49.9m in 2023. Gross profit margin grew slightly to 53.4% in 2023 compared to 2022’s figure of 53.2%. 

Like with Q4, the most positive metric was wagering revenue, which year-on-year surged by 26.6% to €22.4bn. 

Adjusted EBITDA also significantly increased, by 26.3%, to a value of €15.2m for 2023. 

Special Committee 

Within the set of results, the supplier confirmed the formation of an ad hoc special committee, to be chaired by independent Board member Don Robertson. The purpose of this is to review Bragg’s strategic alternatives, which may include the sale of the company, further acquisitions, among other alternatives being considered. No decisions have been made at this time relating to strategic alternatives. 

In recent weeks, there have been similar moves from other companies in the industry. 888, for example, initiated a review of its US B2C operations, including a potential US market exit, while Entain has been reviewing its M&A activity with reports of potential division sales. 

Comments 

Bragg CEO Matevž Mazij gave some thoughts on the results: “We anticipate a further surge in the global adoption of these games in 2024. Last year, we successfully launched a total of 29 new proprietary online titles worldwide, including 26 proprietary titles newly introduced to the European online casino markets and 15 proprietary titles newly introduced to the North American online casino markets. We expect to maintain or exceed this pace of game releases this year. 

“By continuously expanding our portfolio of higher-margin proprietary and exclusive third-party games to a wider range of new partners at an accelerated pace, we are well positioned for long-term growth in top-line revenue, gross profit, and Adjusted EBITDA, along with improved operating margins. 

“Our strategic actions have positioned Bragg as an essential content source for leading international iGaming operators, strengthening our groundwork for consistent and profitable development. With confidence, we affirm our readiness with the appropriate strategies, financial strength, and infrastructure to maintain our business momentum while executing initiatives that foster cash flow growth and generate added value for our shareholders.” 

Last week, Bragg obtained approval as an authorised service provider from the Peruvian Ministry of Foreign Trade and Tourism to provide casino game aggregation in the country. 


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